Except for financials, most sector index pulled back last week, a much needed and healthy pullback.
Most sector snapped back after 3 day of minor pullback.....
BUT.....SOX is in a tailspin and is down 5 straight trading days......
SOX did not show green even on Friday.....
NOW...we have Thanksgiving shortened 3.5 days of trading this week.....
Most traders and Investors are wondering what is in store this week....
RSI is looking little more appetizing than previous week when it was flashing major caution, here is a look @ RSI :
XLF 69.34
SPX 66.87
DOW 65.32
Nasdaq 65.02
IWM 57.58
SOX 51.72
As you can clearly see that we are not down enough in S&P 500, DOW & Nasdaq, while XLF is high.
Based on pattern and where we came from, It may be healthy IF we get couple of days of pullback.
IF we get much needed pullback to reset euphoria, It may be a good idea to get back in winners.
Strong stocks have outperformed and there is every reason to believe, that they will continue to do well going forward.
CHINA & USA continue their fight for better trade deal and may create better and better entry point.
Most observers have concluded that their is no urgency for US or CHINA to push for a deal now....
Hong Kong and Impeachment politics may also contribute to delay in any deal making till 2020...
SO...stay on the sideline with limited exposure and wait when trade agreement is signed sealed and delivered, tweets / statements does not cut it anymore....
Good luck with your own analysis and comfort level.
BLOG does NOT give buy or sell.
Saleem
5 comments:
Hi Saleem,
Last week: +3.86% (YTD: +8.24%)
Notable Winners: PLAN BHVN PTON VYGR DDOG CSOD
Notable Losers: ACMR LYB
It was finally one of those weeks I've been searching for all year. Several +10% performers turbocharged the portfolio to nice gains, outperforming indices that were down. I expect this holiday-shortened week to be more of the same when it comes to certain big winners, and the rest of the year might be also. It is key to use relative strength to identify breakout potential, and then let them run! I'm still pruning the portfolio to hopefully be involved with many of these kinds of winners.
Holdings: PLAN AGCO LYB LITE CSOD PTON DDOG BHVN ENPH VICR ACMR TRIL, cash 0.0%
Stocktrader
Hi Stocktrader,
Last week Down 4.05%
YTD UP 59.37%
Saleem
Hi Saleem,
Sold ACMR @ 14.26
It has not performed like other semiconductor companies during this huge run and so it needs to be let go.
Stocktrader
Hi Saleem,
Bought CSTL @ 27.06
After an amazing revenue beat, it has rested for a while near highs. I'll try this for a run higher again.
Stocktrader
Hi Stocktrader,
Good luck with CSTL....
Saleem
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